A Portfolio Is Considered to Be Efficient If

question 57

Multiple Choice

A portfolio is considered to be efficient if:

• A) No other portfolio offers higher expected returns with the same risk.
• B) No other portfolio offers lower risk with the same expected return.
• C) There is no portfolio with a higher return.
• D) Choices a and b
• E) All of the above

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Definitions:

Psychological Reasoning

The process of evaluating, analyzing, and understanding the mental processes underlying human behavior and thought.

Mental States

The particular conditions of mind or consciousness, including emotions, thoughts, beliefs, and desires.

Scripted Knowledge

Information stored in the brain as scripts, representing sequences of events or actions, often applied in understanding social situations or routines.

Precausal Stage

A stage in cognitive development where children's reasoning is not yet logical and is based on superficial appearances rather than causal connections.